The other major challenge before the government would be to contain fiscal year deficit during 2011-12. "The fiscal year situation remains challenging as the revenue collection was lower than expected in the first half of the current year," it said.
The government proposes to bring down the fiscal year
deficit to 4.6 per cent in the current fiscal year, from 4.
7 per cent in 2010-11. However, poor disinvestment and tardy revenue collection is putting pressure on fiscal year deficit.
As far as growth is concerned, it is likely to moderate to 7.5 per cent in 2011-12 from 8.5 per cent a year ago.
The report, further, said that the global risks to the stability of the domestic financial system have intensified over the past 6 months.
"Emerging developments in the macro economy and in the financial soundness indicators of the banking system pose some concerns as do th